Cur­rency moves the kicker

Finweek English Edition - - Market Place -

There were trad­ing up­dates galore from the re­tail­ers and most are very grim, with Sho­prite* show­ing that in­fla­tion is drop­ping post the drought with it re­port­ing 5.9% in­fla­tion com­pared to 7.4% in De­cem­ber. This of­fers an­other glim­mer of hope for con­sumers. How­ever, the big story for Sho­prite was the cur­rency moves. For ex­am­ple, Nige­rian sales in­creased a mas­sive 50.24%, but cur­rency moves saw them down 6.98% in rand terms. This is al­ways go­ing to be a risk. And while we’ll also see years when the op­po­site hap­pens, our cur­rency is stronger than most cur­ren­cies in the rest of Africa so the over­all trend is likely to be nega­tive.

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